March 21, 2011

T-Mobile USA And Apple's iPhone

U.S. customers of T-Mobile likely will not have access to Apple's iPhone for at least one year, assuming a proposed acquisition from AT&T is granted federal approval.

Following the announcement on Sunday that AT&T plans to buy T-Mobile to create the largest wireless provider in the U.S., a list of frequently asked questions were posted on the official T-Mobile website. In that list, one question is specifically devoted to the iPhone, which is currently only available to AT&T and Verizon customers.

"T-Mobile USA remains an independent company," the FAQ reads. "The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4G."

T-Mobile cannot yet offer the iPhone because its wireless network is not compatible with the 3G radio found in the GSM version of Apple's best-selling smartphone. And that won't change until AT&T's proposed acquisition of T-Mobile is approved by federal regulators -- a milestone that is by no means guaranteed.

The merging of customer bases from AT&T and T-Mobile would create a total of about 130 million users, making AT&T the largest carrier in the U.S. AT&T has touted that the acquisition of T-Mobile will help to speed up its own existing nationwide network.

Though they operate on different radio frequencies, the networks of AT&T and T-Mobile have a common technology base with 3G UMTS. That will make it easier for AT&T to merge the two networks and ensure that handsets from both companies will be compatible on the same network.

T-Mobile's FAQ also notes that the acquisition will offer "significant benefits" for customers, improving network quality and boosting speeds.

"The merger will ensure the deployment of a robust 4G LTE network to 95% of the U.S. population, something neither company would achieve on its own," it reads. "Also, because of our compatible networks and spectrum, the customers of T-Mobile USA and AT&T will experience improved voice and data service almost immediately after the networks are integrated."

Customers were also advised that they should not wait to sign up with T-Mobile or upgrade their handset, as the company remains independent until the deal is approved. The company will also honor all contracted plans that are entered into before the change of ownership.

AT&T announced on Sunday its plans to acquire T-Mobile for $39 billion. The cash and stock deal, if approved, would give Deutsche Telekom, the owner of T-Mobile USA, an 8 percent stake in AT&T.